How to start an ATM business

You need to consider the costs, register your ATM business for taxes, and set up accounts for your ATM business in order to start an ATM business. For details on these steps and others you can take to start an ATM business, use this guide:

• Consider the costs of an ATM business. The first step you must take is to evaluate the costs of starting an ATM business and make sure you have the startup capital to succeed.

  While starting an ATM business is different from many other businesses in that you don't need to rent or purchase an office space or obtain a lot of supplies, equipment, and resources, there are still some things you must purchase.

  An ATM machine can cost anywhere from $3000 to $10,000 per unit, and sometimes more. Each machine also needs to have at least $2000 on it on a rotating basis.

  The only other items you need are an insurance policy, a bag for transporting money, proper tools for routine ATM maintenance, and a dependable car. Each ATM must also have access to a phone line or the internet, and you will need a computer with specific software or programs to check the status of each ATM unit your business has.

  Most ATMs require a minimum of $2000 in them per week, and sometimes considerably more. This depends on where your machines are located and what kinds of customers are using them.

  Many banks will have surcharge fees for the use of your ATM, and business establishments charge a monthly fee or commission for the use of your ATM in their facilities. This also comes down to the contract both parties agree upon.

  ATM business owners should also consider requiring clients to sign a services agreement before installing a new ATM machine. This agreement clarifies client requirements and expectations. It also minimizes your risk of legal disputes by determining payment terms and conditions, service level expectations, and other aspects as well.

  Since you are starting a new ATM business, it is strongly encouraged that you do adequate research into your market to ensure margins are properly set from the beginning. This helps you achieve higher profit margins with your ATM business.

• Register your ATM business for taxes. You need to register your ATM business and obtain an EIN. Also, you should familiarize yourself with the legal requirements for a small business in your city or state.

  You might want to consider applying to become a limited liability company (LLC). If you operate as an LLC, your personal and company information is entirely separate. While this changes your tax status, it does protect you from personal losses based on the company's performance.

  An LLC is also a good option because once your ATM business starts to grow, you'll be able to hire employees to help you.

  Requirements will vary from state to state, so it's important to do your own research into your specific state's requirements. Business insurance is necessary to protect your LLC from liabilities and other possible claims.

  It is recommended that you seek the advice of an experienced insurance agent to determine all the necessary insurance policies you should get for your candle business.

  Once you have this determined, you'll also want to get a Federal Tax ID number. This helps you get a license to run your business. This is also referred to as an EIN or Employer Identification Number.

• Set up accounting for your ATM business. You are going to need a strong accounting system for your ATM business because your business specializes in money.

  Recording your various expenses and operational costs is essential to keeping your business operating smoothly and keeping your profits steady. You need to be able to evaluate the financial performance of your ATM business on a micro and macro level. Accuracy in accounting also greatly simplifies your tax filing every year.

  You may want to enlist the services or eventually hire a professional accountant to help you with the finance-related tasks of running an ATM business.

• Get the proper permits and licenses. This is essential to running an ATM business, and the specifics can vary from state to state.

  If you don't get the necessary permits and licenses, your ATM business may accrue substantial fines or, at worst, be shut down. Do your due diligence and research the proper permits and licenses you will need to start an ATM business.

• Promote and market your ATM business. One of the great aspects of starting an ATM business is that it does not require much if any, promotions or marketing techniques.

  To ensure your business grows, you seek to build long-lasting relationships with the banks or merchants that have your ATMs in their establishments. This is critical because they are the ones who are mostly going to be interfacing with your customer base.

  To keep customers coming back to your ATMs, make sure they are not low on cash or experiencing maintenance issues often. If you can get a solid reputation for your ATMs, your consistency of customers will only grow.